In this paper we consider two regions competing for the larger part of the investment by a mobile firm whose decision is based on the quality of human capital in each region. This in turn depends on the initial skill level and the amount of higher education in the region, with a possible...

This paper discusses rising enrolment rates, access, governance, underperformance in research and teaching, lack of internationalisation, private returns to education and the funding problems of European universities. Our proposals for reform are based on more autonomy for universities, higher...

We assume that students can acquire a wage premium, thanks to studies, and form a rational expectation of their future earnings, which depends on personal "ability". Students receive a private, noisy signal of their ability, and universities can condition admission decisions on the results of...

This paper analyzes how mobility of post-graduate skilled workers and students across different countries affects the quality level of higher education and the way education is financed. We start by examining a closed economy. In the presence of imperfect credit markets the education level with...

We study voting over higher education finance in an economy with risk averse households who are heterogeneous in income. We compare four different systems and analyse voters' choices among them: a traditional subsidy scheme, a pure loan scheme, income contingent loans and graduate taxes. Using...

This paper presents a model of two countries competing for a pool of students from the rest of the world (ROW). In equilibrium, one country offers high educational quality for high tuition fees, while the other country provides a low quality and charges low fees. The quality in the high quality...

This paper investigates how the abolishment of a ban on tuition fees affects the quality of higher education with centralized and decentralized decision making. It is shown that a marginal introduction of tuition fees fully crowds out public funds under centralization, whereas educational...

This paper extends the standard human capital model with real options. Real options influence investment behavior when risky investments in human capital are irreversible and individuals can affect the timing of the investment. Option values make individuals more reluctant to invest in human...

Despite the importance of the Bologna process for the mobility of students, and the further mobility of graduates, as well as for peace, growth and welfare in that area, nothing has been decided so far for the financing of internationally mobile students, so that the burden of that financing,...

This paper uses an overlapping generations framework to analyze the implications of different financing regimes in the education sector for human capital formation and economic welfare. Agents privately invest in education after they have received a noisy information signal about their...